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The Emergence of Capitalist Economy In Russia

land. These two events created a democratically governed region with vast potential for economic growth. In this environment, the beginnings of a conflict between the property owners, known as the bourgeoisie, and the working classes, called the proletariat, developed. (Berki) Socialists propose a solution for this conflict. (Berki) All means of production and distribution are controlled by a central organization, likely a branch of the government. These people instruct all those within the state as to how their capital should be managed. In exchange, all wealth within the state are distributed equally. The government also controls prices, ensuring that all people have the same amount of wealth. This eliminated both the rich and poor from society. As one might expect from such a system, the people with the most to gain - those under the poverty line - were the most staunch supporters of socialism. The wealthy, who would lose much of their money in a socialist society, were strongly opposed to the theory. This division of support created an poor image for socialists, as the lower classes were the primary adherents to the socialist theory. Socialism has a number of benefits, especially in that it would truly create greater equality. However, there are fatal flaws in this theory. The black market is one major flaw. Citizens may be able to purchase goods at lower prices from non-governmental dealers. Also, because of the immense amount of power which the government has, socialism is a system extremely susceptible to corruption. (Fry) C. The Dual Revolution in Russia In March of 1917, the 300-year-old Romanov dynasty was overthrown. (Lih) Massive discontent with the czarist state, an ongoing revolutionary movement, and the onset of World War I all contributed to the outbreak of fighting in Russia. Since peasants were freed from servitude in 1861, poverty was widespread in the nation, and inadequate resources pried apart ...

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